Loans for Foreign Domestic Worker (#FDW)
Updated: May 16, 2019
Not all moneylenders offer loans to you. For those moneylenders who do, Payday loan is the most common offering. Payday loan requires #FDW to repay the loan on your next upcoming salary. The loan amount may be up to your one month's salary. Payday loan is short and sharp, best use in an emergency. However it means all your upcoming salary are set aside for repayment and you are left with none to spare for yourself. Nevertheless, after a month of income sacrifice, you are back on your regular income flows.
Most FDW take a loan for the purpose of meeting the financial need, situation or crisis back home. What if the loan amount up to one month's salary is just not enough to meet the your financial needs back home? What if the you need higher loan amount than 1 month's salary and longer period of repayment?
To satisfy these needs, some Moneylenders offer installment loan up to 3 months. The loan amount for 3 month installment loan can be as high as S$1,000 with monthly installment amount of about S$360. With this installment amount, you can still have some net balance, after deducting loan installment, to spend or save for yourself.
What happen if the crisis back home just could not be resolved with $1000 loan and you need more? Few, close to none, moneylenders are willing to grant installment loan of more than 3 months. Some moneylenders may, however, grant you higher loan amount. This will result in you paying higher monthly installment that will leave you with minimum balance for yourself.
It is also noteworthy that you can at most borrow up to S$1,500 from all moneylenders in accordance to prescribed legal limit. This may not be too bad as you seriously would risk over-borrowing if you do not contain your needs for financial assistance appropriately and may even jeopardize your job as #FDW as a result.
Whether a payday or installment loan, you need to assess your financial situations. Be selective with the moneylender you approach and ask for the loan that suits you most.
Should you require an installment loan of up to 6 months, check out with our consultants! We offer loans up to S$1,500 and up to 6 month installments. With this loan, you need not take loans from many moneylenders and afford a comfortable monthly net income to spare or save whilst you continue to service and repay the loan.